Home prices are rising towards the end of the year.
The average purchase loan rose for the second week in a row to $416,200. This is the second largest amount ever.
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“High loan volume is an indication that activity is on the higher end of the market,” said Joel Kahn, associate vice president of economic and industry forecasting at the MBA. “Home price growth remains faster than historical and inventory averages, particularly for start-up homes, and continues to track strong demand.”
These higher rates could slow the overall market as mortgage demand fell 0.6% last week, according to the Mortgage Bankers Association’s weekly survey.
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The reason for the decline was the purchase orders, which fell by 3%.
The refinancing index jumped 2% as homeowners took advantage of low interest rates.
Kahn added: “The 30-year fixed rate fell to 3.27 per cent – its lowest in four weeks – and helped spur increased refinancing across all loan types. FHA and FHA refinancing jumped 4 per cent. and 12 percent, respectively.
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The share of mortgage refinancing increased to 65.2 percent of the total applications.
The survey covers more than 75 percent of all residential mortgage applications for individuals in the United States, and has been conducted weekly since 1990.